Bengaluru: The Bangalore Chamber of Industry and Commerce (BCIC) on Wednesday termed the State Budget as a “Progressive Budget” with equal focus on rural-urban development which tries to address the regional imbalances. Specifically, on the tax side, the State Budget is in the right direction – one more step towards being one of the front runners in implementation of GST.
In line with the direction set in the Union Budget 2017, the State Budget also provides thrust to rural development. Be it education, health, irrigation, family welfare, sports, horticulture, sericulture, water resources, medical etc., every sector has a got a budget allocation, quite of few of them populist though, with an eye on the next year’s elections.
Thyagu Valliappa, president, BCIC welcomed the State Government’s directional thrust for infrastructure development especially in and around Bangalore which is very essential to safeguard the ‘Brand Bengaluru’ in the Global community. He said: “CM’s nod to start the rail link between Silk Board and K R Puram is a great initiative and will mostly ease Bangalore’s IT workforce commuting woes. Similarly, the thrust to kick start the second phase of Namma Metro will do a lot of good. The various proposals and allocations to BMTC, BMRCL, BDA and BBMP are a clear indication of the focus and attention to address the infrastructure needs of Bengaluru. As a direct result, all this will certainly attract fresh investments into the State.” However, how much of these funds will really translate into work on the ground – only time can tell.”
He further added: “The State Government’s proposal to work closely with Universities, Academic Institutions and industry to establish Centers of Excellence and finishing schools in IT, electronics and animation sectors is a commendable measure considering that Bangalore is the hub for innovation and skill development. Similarly, the State Government’s initiative to set up new Industrial Training Institutes in North Karnataka is also a welcome initiative and would promote overall education needs of rural Karnataka.”
S. Venkataramani, Chairman, State Taxes Expert Committee, BCIC appreciated the ‘karasamadhana scheme’ which would help the state to largely reduce the baggage of pending litigation as we move into GST with effect from July 1, 2017. “This will help the tax department to plan and deploy its staff more effectively and efficiently while keeping an eye on the training requirements for ushering in GST,” Venkataramani said.
While the Government is trying to promote every industry, the increase in the road tax on motor vehicles is uncalled for and does not appear to have left a good taste.
Overall, the BCIC commends the focus for development of infrastructure and the thrust for the rural sector including allied sectors, while more could have been done for industrial development in the State, especially when the State is losing projects to the neighbouring States.
